TMCnews Featured Article
April 09, 2012
Verizon Mobile Video Network to Become Available this Summer
By David Gitonga, TMCnet Contributing Writer
Verizon (News - Alert) may soon be launching a wireless mobile video network by the holidays according to the CEO, Lowell McAdam. Lowell said that the need to offer such a service has been fueled by the content providers realization that the current home channels and layout “may not be appropriate for the mobile environment” and that some of these content providers prefer a la carte approach.
Before all this can take place though, Verizon Wireless (News - Alert) will need approval from the FCC to allow spectrum licenses worth about $3.6 billion.
Verizon Wireless seems to have been preparing to offer such a service when it purchased 122 AWS spectrum licenses back in January from SpectrumCo, LLC which were owned by Time Warner Cable, Comcast and Bright House Networks. The deal to sell these spectrum licenses has been seen as a bid to win approval from Capitol Hill by showing the benefits for both Verizon and consumers of offering these additional video services. Its approval will see Verizon and AT&T take up 60 percent of the available spectrum.
The mobile video network will likely continue to put a strain on the available broadband data allocation which is under pressure from just normal usage. Sprint and T-Mobile (News - Alert) already have video services in place with T-Mobile TV pricing at $4.99 per month and two tiers of TV service going for $9.99 per month.
These carriers also offer pre-recorded and live video streaming to their customer phones. While the proposed rate for watching YouTube (News - Alert) videos was $0.5, Verizon might be willing to offer a discount to add to its revenue and subscriber revenue while luring users away from YouTube. Verizon has already made plans to expand its 4G LTE (News - Alert) network and hoping to double its footprint by the end of the year. This will see it reach more than 400 markets. Verizon’s 4G LTE network often exceeds home Internet speeds.